The transaction is subject to regulatory approval and is expected to close during the fourth quarter of 2014.

Schrader is headquartered in Denver, Colorado and has sales and engineering offices in the US, the UK, Germany, China, Japan and South Korea. Manufacturing facilities are located in the US, UK, France, Brazil and China. Schrader employs 2,500 people globally, including over 300 engineers. Schrader is expected to generate approximately USD550 million in revenue in 2014.

"The acquisition of Schrader extends Sensata's leadership position in pressure sensing and provides further access to a rapidly growing USD2 billion low pressure sensor market where the largest current opportunity is in TPMS," says Martha Sullivan, Sensata Technologies president and chief executive officer. "Additionally, Schrader's expertise in MEMS sensing, wireless communications and ASIC design will be highly complementary; we are excited to welcome this talented team into Sensata's global organisation."